Bloomberg: Warren Buffet's Berkshire Drops to Lowest in 5 Years

By: TraderMark Saturday, February 21, 2009 1:55 PM

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I wonder if Warren thought the tide would take his boat out as well? I thought it was bad in November when Mr. Buffet quickly lost a few Billion in Goldman (Nov 11: Goldman Sachs (GS) - Beaten, Bloody - Warren Buffet Down $2 Billion) but with what his holdings are doing lately - it's starting to get mighty serious. What's amazing is Buffet railed against the use of derivatives and now has one huge bet out there using them (granted it's quite an low probability event he is betting against but still...)

As an aside, I've proposed to some people how much of a profit opportunity it has been to SHORT the equity of any stock Warren buys the bonds of - he takes very onerous terms (Sep 23: Warren Buffet Finally Decides to Start Buying Distressed Assets) (Feb 3: Buffet Provides Financing to Harley Davidson). Thus far it's been a winning bet - in spades.

Via Bloomberg

Warren Buffett’s Berkshire Hathaway Inc. fell to its lowest price in five years in New York trading amid concern about possible losses on bets the billionaire chairman has taken on world stock markets.
Berkshire Class A shares, the most expensive on the New York Stock Exchange, slipped $1,600, or 2 percent, to $77,000 at 4:01 p.m. in composite trading, the lowest since October 2003. The stock of the Omaha, Nebraska-based firm has declined for six straight days and plunged 46 percent in the past 12 months, compared with the 43 percent drop of the Standard & Poor’s 500 Index.

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